Wednesday, February 11, 2009

I must admit I am getting a little (OK, a lot) concerned that this country and by extension the whole world is heading for disaster. The bad economic news continues to pile up. The players in the terrorist strongholds are emitting their foul odor again. Our neighbor to the south is disintegrating into lawless chaos and is likely to collapse (though you're hearing nothing from the major media about it). And... Our God-like President has successfully slammed years worth of leftist agenda into one unprecedented appropriations bill that went through zero debate. Is it democracy when the opposition party wasn't even allowed to enter the room?

While it has been well known that the housing bubble is at the center of our current economic woes it is less well known that it too was a symptom or rather a masking of the real issue. When the Fed played around with interest rates and the Congress tried their hand at social engineering by forcing financial institutions into lending money to those who historically would never stand up to the scrutiny they created a monster. The monster rose up in the form of skyrocketing housing values and shady Wall Street constructions that were sold to unsuspecting investors.

What is the real issue? America no longer creates real wealth - we redistribute it.

For several years the artificial rising value of their home was like a piggy bank homeowners tapped into to fund an orgy of consumer spending which cascaded into retail development and business expansion. When the smoke cleared it has become evident that there is no there there.

Without an ever increasing value of our homes our real source of wealth has dried up. The fact that wages have not kept up to prices is a slap in the face that really stings now. The fact that the bulk of job creation has been service sector jobs which disappear when consumers stop buying. We find there are no good paying jobs left for the middle class because businesses have chosen to move to China. The fact that the stock market collapse has destroyed our retirement plans just adds to the anxiety. The fact that governments at every level suck more and more wealth from the middle class year after year in an effort to either create a socialist paradise or to service the people kicked out of productive society - the middle class is squeezed to the point of breaking.

Now for the real kick in the pants. The subprime mortgage mess will soon be eclipsed by the commercial real estate collapse which has just started to heat up. Last week 4 of the 5 banks that failed declared that commercial real estate defaults was the reason. As if the self aggrandizing blowhards in Congress didn't have enough to cackle about with the mortgage and investment bankers - wait til this shit hits the fan.

In a few short weeks the new President has driven us closer to full blown institutional socialism than 30 years of drips and drabs ever did. Some of the rumors of what is actually in this "stimulus"(porkulus) bill are frightening. There are healthcare mandates that sound like down right invasions of privacy. There are second ammendment attacks as well. This my friends is just the beginning of the Obama, Ried and Pelosi reign. Their spending orgy will doom our children's children to debt servitude on scale never before seen.

The untold story is the state of the Mexican state. The government in Mexico City has lost all control over the north. The drug cartels weild all the power in the states the border America. There has been armed incursions into American territory to run drugs and illegal (invaders) workers. Brave Americans who have taken the law into their own hands to defend their own property face retribution from the drug lords and American prosecutors. Haven't seen these stories on the nightly news? I'm shocked.

What happens if the Mexican government fails? What happens when the American dollar fails? What happens when the Chinese stop buying American debt because their export market collapses before they have built a Chinese version of middle class consumers? What happens when terrorists resume their activities on American soil now that Bush is gone? All these things are very possible and very, very likely.

Higher Math

OK, I'll bite. What is this?

Well, that's a good question... I can't wait to find out either!

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